Active real estate investors often accept origination fees as a fixed cost of doing business, paying a percentage of the loan amount at closing on each deal. However, homebldr, a technology-driven investment financing platform, has launched a subscription product that eliminates its origination fees entirely for 12 months, a model with no direct equivalent in the market.
The concept is straightforward but carries significant implications for investors closing multiple deals per year. Origination fees at 1.3% on a $417,000 loan amount to roughly $5,421 per deal. For an investor closing six deals at that average loan size over 12 months, totaling $2.5 million in loan volume, homebldr origination fees would reach $32,526 on a deal-by-deal basis. Actual fees vary by deal, loan type, and capital source, but the annual total often surprises investors. Adam Eldibany, founder of homebldr, notes that while the per-deal fee seems reasonable, the annual figure shifts the conversation from whether the fee is reasonable to whether the structure itself is optimal.
The homebldr financing subscription works differently. Instead of paying origination on each transaction, subscribers pay a single upfront fee to access zero homebldr origination across all eligible deals for 12 months, up to a loan volume cap determined by their tier. The subscription comes in three tiers. The Core tier, for investors closing two to three deals per year, covers up to $1 million in loan volume. The Growth tier, which Eldibany says fits most subscribers, covers up to $2.5 million in annual loan volume for investors closing a transaction roughly every couple of months. The Scale tier is for the most active investors, covering up to $5 million annually. Using the Growth tier example, an investor closing six deals totaling $2.5 million would pay $20,000 under the subscription versus $32,526 under the traditional model, a 39% reduction saving roughly $13,000. The break-even point arrives well before the full volume cap is reached, with investors using as little as 45 to 65% of their allotted volume typically already ahead.
Beyond savings, the subscription offers structural flexibility for cash management. Traditional origination fees are paid in cash at closing, requiring documentation of the source if deposited within 60 days, and not all funding sources are accepted. The homebldr subscription fee is paid entirely outside of closing, via credit card, other debt, gifted funds, or buy now, pay later providers like Affirm or Klarna, with no sourcing requirements. This keeps capital in the investor’s hands rather than at the closing table, a benefit that matters more for investors running multiple projects than any single fee comparison suggests.
Eldibany also addresses the assumption that working directly with a lender produces better pricing than going through a broker. He argues that direct lenders offer retail terms, while experienced brokers can access wholesale and preferential pricing from the same capital sources that are not available through the retail channel. Many competitive capital sources operate exclusively through the wholesale channel and do not work directly with investors, regardless of their experience. Subscribers typically access wholesale and preferential terms from homebldr’s capital network without additional fees or yield spread added, delivering both a lower total cost and better underlying pricing than most investors could obtain on their own.
homebldr provides real estate investors with access to a network of more than 80 capital partners, including lenders, family offices, and private lending groups, operating on a broker model nationwide for fix and flip, new construction, and long-term rental financing.
Disclaimer: This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.
